Sarfaesi - personal guarantee

Personal assests of the guarantors of bank loans cannot be proceeded under the SARFAESI Act, unless the said property is mortgaged to the said loan facility.

No ,Personal guarantee not enforceable under Sarfaesi act.

Banks follow a set out procedure for providing financial accomodations to Companies & individuals. They create security interest on properties mortgaged with them. If the borrower fails to repay & the loan account becomes NPA, the Bank initiates SARFAESI Proceedings by issuing notices after which takes possession of the property to realise the dues by selling the same. The property so mortgaged can be of the borrower or of any third party as guarantor.

Personal guarantee do not come under SARFAESI ACT unless some property of the Director as guarantor has been mortgaged. 

After selling the secured assets, for the Balance, the Secured Creditor is entitled to recover the dues by invoking the personal guarantee; proided the invocation is within limitation period.

According to Sec.31(a) of SARFAESI Act the provisions of the Act  do not apply to  security given by or under the Indian Contract Act, 1872 (9 of1872). As rightly opined by Sri Narendra the lendor can proceed against the guarantor in a suit/claim whatsoever to recover his debt.